Vast Resources (VAST) has completed its reverse takeover of Gulf International Minerals, returned to trading on AIM and started a drilling campaign at its Aprelevka joint venture in Tajikistan.
The transaction gives Vast a 49% beneficial interest in the Aprelevka JV, which holds four active mining licences along the Tien Shan Gold Belt in northern Tajikistan. The operations produce about 11,000 ounces of gold and 130,000 ounces of silver per year from mined ore and tailings.
Vast has also completed its placing and subscription, raising gross proceeds of about £7.5 million at 6.25 pence per share, alongside a £300,000 oversubscribed retail offer.
The fundraising proceeds, together with the US$10 million Glencore debt facility announced yesterday, will be used to settle creditors and loans, fund transaction-related professional fees, support working capital and advance the technical development of the Aprelevka assets. Of the debt facility, US$4 million is earmarked for Aprelevka expansion, with US$6 million allocated to working capital and debt repayment.
Following shareholder approval, Vast has completed a 25-for-one share consolidation. Its enlarged share capital comprises 1,645,941,556 ordinary shares of £0.025 each, with dealings expected to resume on AIM at 8.00am today under the ticker VAST.
The company also said it has received interest from investors seeking to invest about £500,000 on the same terms as the recent subscription. Subject to binding commitments, Vast intends to proceed with a further subscription in the coming days.
Meanwhile, a drilling campaign has started in Tajikistan following recent drilling, trench sampling and metallurgical test work on the Soviet Tailings Facilities. The programme is designed to establish a maiden JORC-compliant resource for assets held within the Aprelevka JV.
Vast's Chief Executive Officer Andrew Prelea said: “Today marks a pivotal moment for Vast and one that has been a long time in the making. The journey to complete this reverse takeover has required enormous determination and persistence from the entire team, and I want to sincerely thank our shareholders for their patience and continued support throughout what has been a complex and demanding process.”
“I believe that patience will be well rewarded. The enlarged group can now move forward, free of its legacy debts, and with a clear and credible path to becoming the profitable, mid-tier mining company we have long set out to build.”
“The Aprelevka portfolio of mines are cash generative today, with a proven production track record stretching back over two decades. We have a well-defined route to increasing production and improving operational efficiencies across the portfolio, and we are confident that the tailings reprocessing programme will be a further low-cost, near-term growth lever.”
“Beyond production growth, we are committed to setting a benchmark for responsible and sustainable mining in the region, working closely with the Government of Tajikistan as our joint venture partner to deliver lasting economic and social value. In line with this, we will also continue to evaluate further opportunities across the Tien Shan Gold Belt and the broader Central Asian region, while also progressing plans for the operational restart of our Romanian assets to ensure Romania provides a continued avenue of growth for the Company.”
“This is the beginning of a new chapter for Vast, and we look forward to delivering on the potential of this enlarged platform for the benefit of all our shareholders.”
View from Vox
Vast has now completed the transformational step that underpins its return to AIM, with a producing gold and silver portfolio, fresh funding and the US$10 million Glencore facility in place. The immediate focus turns to resource definition and production growth at Aprelevka, with drilling now under way and further subscription funding potentially available.